SaaStr 837: 10 Things To Do Right Now to Become AI Native with Filevine's CEO & Founder

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The Official SaaStr Podcast: SaaS | Founders | Investors 28 min 1 speaker 5 chapters transcribed 15 days ago
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What is the main topic discussed in this episode?

Jason Lemkin 0:01
Welcome to the official Saster Podcast, where you can hear some of the best Saster speakers. This is where the cloud meets.
Ryan Anderson 0:09
Up today on the Saster Podcast. I had an engineer say to me just a few months ago, with a ton of pride, mind you. We have built an incredible SaaS application that makes tons of money, grows fast, customers never leave it. Fobline has almost 96% gross revenue retention, 124% net revenue retention. He has every reason to be prideful of the application that he's built. And he said, and the great news is now we get to sprinkle AI on top. That is fundamentally incorrect. We all know in this room that if you are going to build an AI application today, you can't simply say, hey, we've got all these APIs, OpenAI has APIs, done. We'll connect them.

What is the opening story about the engineer’s pride and the “sprinkle AI” myth?

Ryan Anderson 0:49
We've got an A an AI application. That is not going to cut it in 2026. To be AI native, actually have to change the architecture of your system. It has to flip.
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Jason Lemkin 1:36
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Jason Lemkin 2:20
It will rock.
Ryan Anderson 2:23
Thanks so much for being here. My name is Ryan Anderson. I am the co-founder and CEO of a company called FileBine. We are an AI legal company, and I'm going to talk to you about how we became AI. We have 6,000 customers, 700 employees, growing extremely fast. We will be uh kind of well above 200 million dollars in ARR this year, growing above 50%, close to 60%. But we have successfully now made the transition to an AI native company. And how can I tell you that? Well, it's in the numbers. It is very plain to see that the numbers back up, that we are now doing far more revenue on a new quarter by quarter basis in AI products than in our SaaS product. Now, that's not to say that the SaaS product Product is in any way less successful.
Ryan Anderson 3:18
And in fact, it's still growing. The SaaS product itself is growing at 35, 40% year over year. We are just growing so much faster on the AI side of the house. So the question for all of us in this room that run SaaS companies, that are leaders at SaaS companies, is sort of how did we do this? And how should we all continue to go AI native? It is a very tough transition and I'll tell you the trick number one and the hardest part. is that nothing is sacred. Let me tell you what I mean. You all have teams that have built incredible things. They are justifiably so proud. Of what they have built, how could they not be? You have products that are working today that bring in a lot of money, and you are going to have to have conversations with your leaders about tearing down what they have built.
Ryan Anderson 4:11
Literally, large components of your code base, not all of it, of course, but meaningful components of your code base that work today, that make you money, will have to be torn down. Down. Now, the trick, of course, is that not everything needs to be torn down. Only the things that make sense. So deciding what should be torn down and what should not be torn down is a big deal.

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